# Commercial solar for Data centres

Data centres run a large, constant load around the clock and face intense pressure to prove sustainable operation. On-site solar PV and battery storage reduce grid demand and support carbon targets — and can be funded with no upfront cost.

A data centre’s base load never sleeps, so any on-site generation is consumed immediately and continuously. While solar cannot cover a 24/7 load alone, it meaningfully offsets daytime draw and demonstrates measurable progress on renewable sourcing.

Battery storage complements existing resilience infrastructure and helps manage peak demand and capacity costs, while a PPA or lease keeps the investment off the balance sheet.

## Why it fits Data centres

- **Constant, high self-use** — A 24/7 base load means every kilowatt of solar is used on site the moment it is generated.
- **Sustainability that is audited** — Clients and regulators scrutinise data-centre energy; on-site renewables are a clear, reportable reduction.
- **Peak and capacity management** — Battery storage supports demand management alongside your existing UPS and backup systems.
- **Off-balance-sheet options** — A PPA or operating lease funds the system without capital outlay, preserving budget for core infrastructure.

## Frequently asked questions

**Can solar realistically power a 24/7 data centre?**

Not on its own — but it offsets a valuable share of daytime demand and, with battery storage and smart tariffs, contributes around the clock. It is best seen as one part of a broader renewable-sourcing strategy.

**Does battery storage interfere with our UPS/backup?**

No. A commercial battery system is designed to complement, not replace, your resilience infrastructure — supporting demand management and peak-cost reduction.

## Funding routes

| Route | Upfront | Payment | Ownership | Maintenance | Accounting | Best for |
| --- | --- | --- | --- | --- | --- | --- |
| Power Purchase Agreement (PPA) | £0 | Fixed rate per kWh | Yours for £1 at end of term | Fully included | Off-balance-sheet (operating cost) | Businesses that want no capital outlay, no risk and no maintenance — just lower bills from day one. |
| Outright Purchase (CapEx) | Full system cost | One-off capital cost | Yours from day one | Optional O&M package | Capital asset | Businesses with capital available that want the strongest long-term return and full ownership. |
| Hire Purchase (HP) | Deposit | Fixed monthly instalments | Yours at end of agreement | Optional O&M package | Asset on balance sheet | Businesses that want to own the system but spread the cost and protect their cash flow. |
| Leasing (Operating / Finance Lease) | Low / none | Fixed rentals (opex) | Return, extend or buy at end | Optional O&M package | Rentals as operating expense | Businesses that want minimal upfront cost and predictable, tax-efficient operating payments. |

**Power Purchase Agreement (PPA)** — Zero upfront. Pay only for the clean power you use.

Pros: No upfront cost or capital outlay; Rate guaranteed at least 30% below the grid; Fully funded, installed and maintained for you; System becomes yours for a nominal £1 at the end.

Consider: A long-term agreement (typically 15–25 years); You don't own the system during the term.

**Outright Purchase (CapEx)** — Own it from day one and keep 100% of the savings.

Pros: Best long-term return on investment; Own the asset and keep every kWh of savings; May qualify for capital allowances / full expensing; No financing or interest cost.

Consider: Ties up capital that could be used elsewhere; You're responsible for maintenance (we can arrange it).

**Hire Purchase (HP)** — Spread the cost, own the system at the end.

Pros: Preserve working capital — pay over an agreed term; Own the system outright at the end; Tax-efficient: claim capital allowances and offset interest; Fixed, predictable monthly payments.

Consider: Interest applies over the term; Subject to finance approval.

**Leasing (Operating / Finance Lease)** — Low upfront, predictable rentals as an operating cost.

Pros: Little or no upfront cost; Rentals are typically 100% tax-deductible; Predictable, fixed payments; Flexible end-of-term options.

Consider: You may not own the system at the end (depends on lease type); Subject to finance approval.

---

Source: [Commercial solar for Data centres](https://ppafunding.com/commercial-solar-for/data-centres) · Contact: 01743 649 888 · info@ppafunding.com · https://ppafunding.com

PPA Funding is an independent introducer operated by DVC Group Ltd (Companies House 10462808), Shrewsbury — not the funder, the installer or the maintenance provider. The service is free to use; a commission may be earned from a partner at no extra cost. Content is educational and is not financial or tax advice.